Foxconn Technology Group (富士康科技集團) chairman Terry Gou (郭台銘) completed his purchase of a stake in Sharp Display Products Corp, paving the way for the two groups to cooperate on the production of panels used in televisions and cellphones.
SIO International Holdings Ltd, wholly owned by Gou, paid ￥49 billion (US$617 million) to buy 979,200 shares of Sharp Display from Sharp Corp, Osaka-based Sharp said in a statement yesterday.
The transaction follows a ￥17 billion payment Gou made last month as the first stage in his acquisition of a 37.6 percent stake in the display business.
Gou, founder of Foxconn and chairman of its flagship Hon Hai Precision Industry Co (鴻海精密), which manufactures Apple Inc’s iPad, is investing his own money in the display business to share the risk after Hon Hai agreed to buy a stake directly in Sharp. The display unit will be renamed Sakai Display Products Corp and operate an advanced 10th-generation liquid crystal display factory in Osaka prefecture.
Hon Hai said on June 23 it would book a loss of NT$4.27 billion (US$142 million), while Foxconn Technology Co (鴻準), a smaller affiliate that makes metal computer casings, would mark down about NT$2.1 billion, from their purchase of new stock in Sharp.
The write-downs followed a drop in the stock of the Japanese electronics maker from the ￥550 a share price they agreed on for the deal.
Hon Hai and Foxconn Technology Co will have a combined 9.9 percent stake in Sharp after the companies complete the transaction this month.
Sharp will own 37.6 percent of Sakai Display, while Toppan Printing Co and Dai Nippon Printing Co will own 9.54 percent each after merging their operations with the display maker, according to a May 24 statement. About 5.7 percent of shares will be held as treasury stock.
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
RSS